Beijing Sanyuan Foods Co Ltd
600429:CH CNE000001FX5
Key Information
HQ:
China
Market Cap:
$0.88bn
Primary Market:
Asia
Coller FAIRR Protein Producer Index
Analysis Overview
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Analysis Breakdown
Risk Score
12/100
High Risk
Greenhouse Gas Emissions
1/100
Scope 1, 2 & 3 Target
5/100
Type of Target
The company does not have a science-based emission reduction target or methane-specific emission reduction target.
0/3
Strength of Target - Non-SBT
The company supports China's "dual carbon" strategy by promoting energy conservation and green development. It has implemented energy-saving measures, such as reducing warehouse lighting, upgrading equipment, and expanding solar power projects, achieving a total photovoltaic capacity of 12,700 kW across four factories.
However, the company does not disclose targets for reducing greenhouse gas emissions from Scope 1 and Scope 2. Additionally, while emissions from raw milk suppliers are included in Scope 3, the company has not set any emissions targets for Scope 3.
0.25/2
Innovation on GHG Emission Reduction
0/100
Innovation to Reduce Agriculture Emissions
The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.
0/1
Feed Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from feed farming.
0/2
Animal Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from animal farming.
0/2
Quality of GHG Inventory
0/100
Quality and scope of GHG inventory Completeness
The company does not disclose its GHG emissions inventory.
0/1.5
Feed & Animal Farming Emissions
The company does not disclose any information on GHG emissions from animal farming. The company does not disclose any information on GHG emissions from feed production. The company does not disclose any information on GHG emissions from land use change.
0/2
Transparency of GHG Inventory
The company does not disclose to the CDP climate change questionnaire. The company does not disclose whether the GHG inventory data is audited by a third party.
0/1.5
Emissions Performance
0/100
Overall Emission Performance
The company does not disclose any information on its emission performance. The company does not disclose a quantitative decrease in emissions arising from feed, enteric fermentation, or manure management.
0/5
Climate-related Scenario Analysis
0/100
Climate-related Scenarios Analysis Conducted
The company does not disclose information on a climate-related scenario analysis.
0/1
Disclosure of Analysis Results on Material Risks
The company does not provide details on the assessment or mitigation of factors posing a material risk to protein production, including feed availability, heat stress, increased medicine and energy costs, and carbon taxes. Additionally, the company does not disclose the number of financially material events related to climate risk during the reporting period.
0/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose its commitment to align capital expenditures with its GHG targets.
0/1
Deforestation & Biodiversity
0/100
Deforestation/Conversion-free Target - Soy for Animal Feed
0/100
Risk Assessment to Identify High-risk Locations
The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.
0/0.5
Strength of Deforestation Commitment
The company does not disclose having a deforestation/conversion-free target for soy.
0/3.25
Transparency - Progress Against Commitment
The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.
0/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
0/100
Supplier Engagement
The company does not disclose any information on how it engages soy suppliers on deforestation and does not provide support to soy producers to encourage deforestation-free production or improve traceability.
0/1.25
Compliance monitoring & Traceability
The company does not disclose how compliance is monitored or what actions are taken if non-compliance occurs. Furthermore, the company does not disclose the level of traceability in its soy supply chain.
0/3.25
Feed Innovation
The company does not discuss innovations or practices to move towards sustainable feed sources.
0/0.5
Water Use & Scarcity
0/100
Water Use & Scarcity in Feed Farming
0/100
Supplier Engagement in Water Use in Feed Farming
The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.
0/2.5
Disclosure of Water Risks in Feed Farming
The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.
0/2.5
Water Use & Scarcity in Animal Farming
0/100
Supplier Engagement in Water Use in Animal Farming
The company does not disclose the proportion of animal protein commodities produced or sourced in water-stressed areas. It does not disclose information addressing water scarcity in its animal supply chain, nor does it discuss guidance it offers to animal farmers/suppliers on water usage.
0/4
Disclosure of Water Risks in Animal Farming
The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.
0/1
Waste & Pollution
0/100
Nutrient Management in Feed Farming
0/100
Supplier Engagement in Nutrient Pollution Risks
The company does not address nutrient management in its code of conduct. It does not disclose a requirement for feed suppliers to have a nutrient management plan in place, nor does it provide guidance, support, or incentives to suppliers/growers on nutrient management or fertiliser use in crop production.
0/4
Innovation to Improve Nutrient Management in Feed Farming
The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.
0/1
Manure Management in Animal Farming
0/100
Disclosure of Pollution Risks from Manure
The company does not outline processes for manure management, conversion to biogas, or sustainable slurry application. Additionally, it has not specifically identified farms located in areas at high risk of nutrient pollution.
0/1.25
Supplier Engagement in Manure Management
The company does not make site-specific nutrient management plans part of its supplier’s contractual agreement or its own farms management. Nor does it provide technical or financial support to suppliers or its own farms to develop nutrient management plans and improve manure storage.
0/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.
0/2.25
Antibiotics
20/100
Policy on Antibiotics Use
25/100
Policy on Antibiotics Use
The company acknowledges the significance of controlling veterinary drugs as part of its food safety commitments. It employs a standardised system to manage drug inventories, which involves reviews and usage restrictions. Farms are required to maintain detailed records, and regular inspections help prevent misuse. However, there is no formal policy specifying conditions for antibiotic use.
The company has implemented initiatives to enhance animal welfare and reduce antibiotic usage, centred around the EDTM dairy farming technology system. This system includes environmental control, digital management of dairy cow production, and total mixed ration nutrition to ensure a comfortable environment for the cows. Seasonal adjustments, such as providing warm water in winter and cooling facilities like sprinklers, awnings, and fans in summer, help mitigate heat stress. Automatic brushing machines also alleviate skin irritation and improve circulation, contributing to better health and lower disease rates.
1.25/5
Disclosure of Quantity of Antibiotics Used
15/100
Disclosure of Quantity of Antibiotics Used
The company maintains records of veterinary drug usage but does not publicly disclose this information. It does not provide details on antibiotic quantities by type or class, nor does it explain the reasons for antibiotic use during the reporting period. Additionally, the company does not report any reduction in the percentage of animals treated with antibiotics or quantity per ton of product compared to the previous reporting period. It also does not disclose whether the antibiotic usage data is audited by a third party.
0.75/5
Animal Welfare
9/100
Animal Welfare Policy
8/100
Welfare Policy
The company does not provide a statement in support of the Five Freedoms or a similar statement on the importance of animal welfare.
0/2
Key Welfare Issues
The company lacks explicit commitments regarding the avoidance of close confinement, routine mutilation, long-distance transportation, and humane slaughter. Furthermore, it does not commit to excluding breeds with production traits that increase anatomical or metabolic disorders.
However, the company has implemented measures for dairy cattle welfare, including providing warm drinking water in winter, and cooling facilities such as sprinklers and fans in summer. Additionally, brushing machines relieve skin irritation, and there is adequate shading to protect against extreme weather.
0.4/3
Assurance & Certification
20/100
Auditing & Assurance by an Animal Welfare Organisation
In 2023, nine of the company's dairy farms achieved Level 1 China Good Agricultural Practices Certification (ChinaGAP). This certification aligns with Global Good Agricultural Practice (G.A.P.) Integrated Farm Assurance standards. Additionally, two of its dairy suppliers have obtained organic certifications.
1/4
Public Reporting on Welfare
The company does not disclose information on animal welfare certifications or assurance programs for its beef operations.
0/1
Performance on Key Material Risks
0/100
Performance on Key Material Welfare Risks by Protein
The company does not disclose information on key animal welfare risks in beef.
0/5
Working Conditions
17/100
Human Rights
10/100
Strength of Policy
The company claims adherence to Chinese labour laws and international human rights standards, but it does not specify which international standards it follows.
0.5/1
Due Diligence Process
The company does not discuss how it monitors, assesses, and mitigates actual and potential human rights risks in its operations or supply chain.
0/3
Evidence of Remediation
The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.
0/1
Fair Working Conditions
12/100
Policy for Direct Operations
The company states it prohibits discrimination, child labour, and forced labour, but does not address the prohibition of abuse or inhumane treatment. It conducts audits on products, employees, consumers, the company, business cooperation, and social responsibility, yet it is unclear if these audits cover the stated policies. The company does not disclose policies on fair working conditions for its suppliers. It mentions protecting employees' rights to rest and vacation but does not provide information on sick pay.
0.6/3
Monitoring & Discosure
The company does not discuss whether it has conducted supplier audits covering human rights or if it has a grievance reporting mechanism open to employees or external stakeholders.
0/2
Safety & Turnover Data
25/100
Committee representation of workers
The company reports that 87.5% of its sites hold ISO 45001 certification and it regularly audits and reviews its safety management system. It conducts special physical examinations for employees in hazardous areas and adjusts positions based on health assessments. A safety production management committee oversees employee health and safety.
However, the company does not disclose the percentage of facilities with site-specific health and safety committees with worker representatives, nor does it address antimicrobial resistance risk for its workforce.
0.72/2
Disclosure of safety and turnover data
The company reports an occupational injury rate of 1.27 per million man-hours worked for FY2023 and states there were no serious injuries or fatalities during this period. However, it does not disclose injury or fatality data for previous years, preventing any assessment of improvement or comparison over time. Additionally, the company does not disclose the turnover rate for the reporting year.
0.5/3
Freedom of Association
20/100
Strength of Policies
The company operates solely in China, where freedom of association is legally prohibited. While it discloses initiatives to support worker representation, such as holding worker congresses and meetings with employee representatives, there is no clear evidence of support for employees' rights to collective bargaining. Additionally, the company does not have a publicly accessible supplier code of conduct that addresses freedom of association and collective bargaining.
1/3
Disclosure of Collective Bargaining Metrics
The company does not disclose the distribution of its workforce according to contract type, nor does it state the number of employees covered by collective bargaining agreements or provide a statement supporting its employees' right to bargain collectively.
0/2
Food Safety
36/100
Food Safety System
50/100
Certifications
The company has successfully renewed its ISO 9001 and FSSC 22000 certifications, recognised by the Global Food Safety Initiative (GFSI). However, it does not disclose the proportion of GFSI-certified sites. It maintains strict supplier product quality standards, requiring suppliers to hold valid ISO 9001, FSSC 22000, or BRC certifications. Currently, 89 suppliers, approximately 35% of its total (254), are FSSC 22000 certified.
2/3.5
Performance
The company has conducted comprehensive food safety risk audits, yielding excellent results. All 830 cases of raw milk tested for pesticide residues, veterinary drug residues, heavy metals, and other contaminants, passed with a 100% success rate. Similarly, 416 cases of finished products passed testing for microorganisms, pollutants, and plasticizers. Additionally, 66,017 batches of finished products were inspected, all meeting quality standards with a 100% qualification rate.
The company inspected 56 factories, reporting no major non-conformities but did not disclose minor non-conformities. A detailed overview of the company's food traceability systems is provided, highlighting the Sanyuan Quality Traceability Tour event organised with People's Daily New Media. However, the traceability system is not consumer-focused, and no specific consumer-facing food safety technologies are mentioned.
0.5/1.5
Product Recalls & Market Bans
23/100
Product Recall Systems
The company identifies food safety as a material business risk, addressing it through daily inspections, weekly risk reviews, and monthly management planning. In 2023, it plans to enhance safety via comprehensive risk assessments across the dairy supply chain and continual updates to its quality management systems. However, the company does not regard product recalls or bans as material risks and provides no details on its recall system, nor does it disclose the number of recalls in the reporting year.
0.12/3
Performance
The company does not disclose information on market bans or recalls, including their number and locations, for the reporting year. Additionally, no such incidents were identified through media screening.
1/2
Sustainability Governance
23/100
Assessment of a Company's Sustainability Governance
23/100
Board Sustainability
The company has implemented a comprehensive compliance management framework focusing on products, employees, consumers, company, business cooperation, and social responsibility, with oversight by the Board of Directors. However, it is not clear if the Board's responsibilities extend to ESG issues beyond employees and social responsibility.
In 2023, the company conducted a materiality assessment, identifying 26 significant issues, including food safety, employee compensation, emissions management, occupational health and safety, waste management, and energy management. There is no disclosure of Board involvement in this process.
Additionally, the company does not disclose board-level expertise in sustainability, food safety, or product development and innovation.
0.62/2
Incentives & Policy Engagement
The company does not disclose executive monetary remuneration linked to climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues, providing a comprehensive list of trade association memberships, or aligning any policy engagement activities with the goal of restricting global temperature rise to 1.5°C.
0/2.5
Innovation & Benchmarking
The company reports an increase in investment in R&D for clean energy and low-carbon technology, driven by changes in national policies and incentives. It also benchmarks itself against peers on ESG issues as part of its materiality assessment process.
0.5/0.5
Alternative Proteins
10/100
Diversification of Products to Alternative Protein Sources
10/100
Existing product portfolio
The company does not explicitly acknowledge that protein diversification is a material business issue. Furthermore, it has not yet set a time-bound target to diversify protein sources, nor does it report revenue or sales linked to alternative protein sources.
0/2.5
Investing for future growth
The company reports that its subsidiary, St Hubert, offers plant-based yoghurt, ice cream, and beverages. However, it does not disclose any future growth investment plans.
0.5/2.5
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Workstream Information
2024 Risk Score:
12/100
Level:
High Risk
Ranking:
55/60
Main Protein:
Dairy
Assessed Proteins:
Dairy
Company Feedback Given:
No
Last Updated:
19 November 2024
2024 Resources
2024/25 Company Dialogue Questions 2024/25 Methodology Mandarin Summary | Corporate Biodiversity Footprints 企业生物多样性足迹摘要 Climate Solutions Report Climate Solutions Supporting Information Corporate Biodiversity Footprints - French Webinar Corporate Biodiversity Footprints Webinar Coller FAIRR Protein Producer Index